IRS Restores Sequestered Funds (AMT only) Affected by OMB Determination


Updated: October 14, 2020

The Office of Management and Budget (OMB) has determined that, pursuant to the requirements of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended, the refundable corporate minimum tax credit claimed under sections 53 and 168(k)(4) of title 26, U.S. Code as in effect for taxable years beginning before January 1, 2018, is not subject to sequestration. Formerly, refund payments issued to, and credit elect and refund offset transactions for, corporations claiming refundable minimum tax credits for prior year alternative minimum tax liability were subject to sequestration. The OMB determination corrects and reverses the previous determination.

The IRS has identified and restored all funds sequestered since 2013 under section 168(k)(4) during fiscal year 2020.